CVS Touts Value of Aetna; Molina Sees Exchange Woes

During a Feb. 12 presentation outlining its 2019 financial results, CVS Health Corp. touted a “successful first full year with Aetna,” saying the transaction produced “synergies above expectations” at approximately $500 million. And CVS’s Health Benefits segment — which houses its new insurance business — posted a “solid” fourth quarter, in the words of Citi Research securities analyst Ralph Giacobbe. Meanwhile, Molina Healthcare Inc., which posted its full-year and fourth-quarter 2019 earnings on Feb. 11, reported quarterly results that were “largely in line” with Wall Street’s consensus estimates, according to Jefferies analysts David Windley and David Styblo. But the analysts also highlighted an underwhelming performance from Molina’s Affordable Care Act (ACA) exchange business.

Across its enterprise in 2019, CVS delivered adjusted earnings per share (EPS) of $7.08 with total revenues of nearly $257 billion — a 32% year-over-year increase “reflecting a full year of Aetna’s operations and positive momentum across our enterprise,” CEO Larry Merlo told investors during the company’s earnings call, per a transcript of the call published by the Motley Fool.

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Leslie Small

Leslie Small

Leslie has been working in journalism since 2009 and reporting on the health care industry since 2014. She has covered the many ups and downs of the Affordable Care Act exchanges, the failed health insurer mega-mergers, and hundreds of other storylines spanning subjects such as Medicaid managed care, Medicare Advantage, employer-sponsored insurance, and prescription drug coverage. As the managing editor of Health Plan Weekly and Radar on Drug Benefits, she writes and edits for both publications while overseeing a small team of reporters who also focus on the managed care sector. Before joining AIS Health, she was a senior editor for the e-newsletter Fierce Health Payer, and she started her career as a copy editor at multiple local newspapers. She graduated with a dual degree in journalism and political science from Penn State University.

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